U.S. markets close in 6 hours 17 minutes
  • S&P 500

    4,546.45
    +33.41 (+0.74%)
     
  • Dow 30

    34,354.85
    +332.81 (+0.98%)
     
  • Nasdaq

    15,338.29
    +84.23 (+0.55%)
     
  • Russell 2000

    2,147.42
    -51.49 (-2.34%)
     
  • Crude Oil

    64.19
    -1.38 (-2.10%)
     
  • Gold

    1,775.80
    -8.50 (-0.48%)
     
  • Silver

    22.40
    +0.06 (+0.25%)
     
  • EUR/USD

    1.1348
    +0.0026 (+0.23%)
     
  • 10-Yr Bond

    1.4170
    -0.0170 (-1.19%)
     
  • GBP/USD

    1.3311
    +0.0034 (+0.26%)
     
  • USD/JPY

    112.9060
    +0.1260 (+0.11%)
     
  • BTC-USD

    56,862.73
    -1,520.90 (-2.61%)
     
  • CMC Crypto 200

    1,449.02
    +10.14 (+0.70%)
     
  • FTSE 100

    7,095.55
    -73.13 (-1.02%)
     
  • Nikkei 225

    27,753.37
    -182.25 (-0.65%)
     

Copper Shortage from Growing EV Demand Could Be an Opportunity for Miners Like Bam Bam Resources Corp.

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
·4 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

Photo by Artyom Korshunov on Unsplash

The following post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga.

The world is currently grappling with a copper shortage that’s causing a surge in prices this year — the vital metal is at its highest cost in more than 1,000 years.

It’s ironic that such a common metal is scarce — only 12% of the entire world’s reserve has been mined throughout human history. An incredible amount of copper is still buried underground.

Copper is a soft, malleable and extremely ductile metal that is a good conductor of electricity and heat. It is essential to human life because it is commonly used in electrical equipment such as wiring, industrial machinery, motors, roofing and plumbing.

Computers and other electrical devices use substantial amounts of copper. Chances are high that the device you are reading this article on has some amount of copper in it.

Renewable Energy and Copper Shortage

The metal has played a key role in the growth of economies and the advancement of technologies. Thanks to the world’s appetite for renewable energy projects and electric vehicles (EVs), copper has reached peak demand, and that hunger may not subside anytime soon.

The world is gradually shifting from gas-powered vehicles to those that run on renewable energy. While both types of cars use some copper, EVs need several times more of the metal than their gas-powered counterparts.

A typical gas-powered car has about 50 pounds of copper, while an electric vehicle has 184 pounds of copper — 3½ times more copper because there are more motors in the batteries and electronics. Copper demand for electric cars and buses is expected to surge from 185,000 metric tons in 2017 to 1.74 million metric tons in 2027.

In addition to electric cars, power grids that get electricity from wind, solar and hydro sources need an astronomical amount of copper. As the world shifts toward a decarbonized economy, more copper will be needed, but unfortunately, even though the earth is blessed with an untapped amount of copper, current demands outweigh supply.

The growing appetite for copper presents significant growth opportunities for copper mining companies like Freeport-McMoRan Inc. (NYSE: FCX), Capstone Mining (OTCPK: CSFFF) and others that are coming to the world’s rescue by breaking ground on new projects.

Disruptive Miner

One disruptive miner that could be a perfect player for the world’s copper crises is Bam Bam Resources Corp. (OTCPK: NPEZF, CSE: BBR). The current copper shortage could present a significant opportunity for Bam Bam as it has been laying a solid foundation for exploration and growth.

The company is engaged in identifying, reviewing and acquiring latter-stage copper and copper, silver and gold assets. This is in direct response to the growing worldwide demand and lack of supply for precious metals fueled by the Green New Deal in the U.S. and most other developed nations with similar programs to address climate change.

Such programs are heavily reliant on silver, gold and especially copper to produce electric vehicles and other renewable power sources and build infrastructure to provide clean and affordable electricity.

The Majuba Hill Project

Bam Bam’s flagship project is the Majuba Hill copper, silver and gold district located 156 miles from Reno, Nevada. The company is focused on safe mining in friendly jurisdictions where government regulations support mining operations.

The Majuba Hill project holds a lot of prospects and is seeing some major exploration activities. The area is perfect for exploration and mining activities.

The project shows indications of a potentially large Copper (Cu), Silver (Ag) and Gold (Au) mineralized body with many features in common with both large porphyry copper and silver-tin-type mineralization. Small-scale historic mining is concentrated on the Majuba fault zone and veins in subordinate structures.

Bam Bam has intensified drilling after identifying a body of oxide copper-silver mineralization.

The company recently announced that it has started drilling at Majuba Hill Porphyry Copper Project and has already revealed that a second drill rig is being added to the project.

Bam Bam’s Majuba Hill is historically significant because mines in the area have been reported to have produced some impressive numbers over the years:

  • Roughly 2.8 million pounds of copper

  • Approximately 184,000 ounces of silver

  • Nearly 21,000 pounds of tin

  • About 5,800 ounces of gold

  • Undisclosed amounts of lead and zinc

With 100% control of the Majuba Hill Project, Bam Bam might be on its way to becoming a significant player in the mining industry and producing the much-needed copper the world has been hungry for.

Read more about Bam Bam Resources here.

The preceding post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.

See more from Benzinga

© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.